Equity Business

Question 1

Based on settlement differences date, types of trading on the financial instruments exchange can be classified into 3 types

• regular transactions
• cash transactions
• margin transactions

Answer 1

Wrong

• regular transactions
• cash transactions
• when-issued transactions

Question 2

In margin transactions, local government bonds can be used as margins securities

Answer 2

Correct

Question 3

When a short position in margin transaction is to be repaid, liquidation amount is the amount after subtracting the amount of interest

Answer 3

Wrong

Sell side of margin transactions is to receive interest. Therefore, liquidation amount is the amount calculated by adding the amount of interest

Question 4

When a short position in margin transaction is to be repaid, liquidation amount is the amount after subtracting the amount of interest

Answer 4

Wrong

Sell side of margin transactions is to receive interest. Therefore, liquidation amount is the amount calculated by adding the amount of interest

Question 5

It is prohibited to withdraw margin in an amount equivalent to computed profit arising due to market fluctuations in connection with margin transactions

Answer 5

Correct

Question 6

One requirements under selecting a stock as a standardized margin trading issue is the ‘issuer has not fallen into a state of having liabilities in excess of assets as of the end of previous fiscal year’

Answer 6

Correct

Question 7

Minimum margin maintenance is

Answer 7

20%

Question 8

Brokerage commission is taken on the [•] amount of contract

Answer 8

Whole

Question 9

Price to cash-flow ratio

PCFR

Answer 9

Operating Cash-flow = Net Profit + Depreciation

Cash flow per share = CF/nb of shares

PCFR = Share Price / Cash-flow per share